President Gordana Siljanovska-Davkova delivered an address at the ceremony marking the 80th anniversary of central banking operations by the National Bank, held at the National Bank Museum.
She spoke about the National Bank, its transformation in response to economic and social changes, as well as its significant contribution, highlighting that 1991 brought a historic shift in central banking: the establishment of monetary sovereignty within an independent and sovereign Republic of Macedonia.
In her view, independence, credibility and trust are not merely formal attributes of central banking, but rather fundamental principles upon which price and financial stability are built. Furthermore, institutional independence and accountability serve as mutually complementary prerequisites for professional decision-making and the protection of the long-term public interest.
Speaking on the importance of price stability, Siljanovska-Davkova pointed out that it directly impacts citizens’ standard of living, the security of family budgets and the ability of households and companies to plan for the future. She stressed that monetary and financial stability constitute a public good, the benefits of which are shared by the entire society.
According to her, global financial crises, geopolitical tensions, climate change and rapid technological development impose new demands on central banks. These institutions must continuously enhance their analytical and technological capabilities, invest in knowledge and expertise and develop mechanisms for responsible risk management.
On the occasion of this anniversary, the President extended her congratulations to the National Bank, paying tribute to all generations of leaders, bankers and employees who, through their expertise, dedication and sense of responsibility, have built and developed the institution.
The Governor of the National Bank, Trajko Slaveski, also addressed the gathering and a documentary film dedicated to the eighty-year evolution of central banking was screened.
Below is the integral address of President Siljanovska-Davkova:
Honorable Governor, Prof. Dr. Trajko Slaveski, Vice-Governors, Members of the National Bank Council,
Honorable Prime Minister, Prof. Dr. Hristijan Mickoski,
Honorable Representatives of State Institutions,
Ladies and Gentlemen,
I am here with you today not merely as a matter of courtesy, but for a substantive reason. The eightieth anniversary of the National Bank’s central banking operations is an important occasion for the institution itself, for the country, and for its citizens. It celebrates the independent, professional, responsible, dedicated, and successful work of one of the country’s most important institutions.
Behind this anniversary lie eight decades of legal and institutional continuity, as well as a rich history reflecting the transformation of financial, economic, and social relations, guided by prudent leadership and sound management, grounded in the values it upholds, the trust it has rightfully earned, and its capacity to respond to challenges.
From the first Governor, Stojan Kjosev, to the current Governor, I believe the National Bank has been led by capable, knowledgeable, and dedicated guardians of financial stability, all of whom deserve our recognition and appreciation.
Adapting central banking to societal, economic, and constitutional change is no easy task: from performing operations related to lending, payment transactions, and foreign exchange operations to planning, statistics, accounting, and control.
The most profound transformation in the modern history of the National Bank came with the independence of the Republic of Macedonia in 1991. The establishment of an independent and sovereign state required the creation of its own monetary system, the introduction of a national currency, and the establishment of an institution entrusted with safeguarding monetary stability in an environment of autonomous economic policymaking and monetary sovereignty.
The successful replacement of Yugoslav dinars with Macedonian banknotes marked a historic step towards establishing an independent monetary policy and safeguarding the value of the national currency. With the establishment of the independent state, the National Bank evolved into a modern central bank.
Over the past eight decades, the National Bank has steadily developed its institutional, analytical, and operational capacities, navigating domestic and international challenges while striving to preserve price and exchange rate stability.
A retrospective reveals a continuous process of institutional transformation: from a central office within a federal monetary system, through a national bank of a republic, to the modern central bank of an independent state. Each stage has had its own creed and physiognomy, yet all reflect the fundamental link between institutional development, economic stability, and accountability to the public.
Three interconnected principles lie at the heart of modern central banking: independence, credibility, and trust. These are not merely formal attributes of institutional design, but essential prerequisites for achieving the central bank’s primary objectives of price stability and financial system stability. Central bank independence is not simply a technical matter of monetary policy, nor is it merely an institutional consideration. It is an integral part of the architecture of modern economic governance and a mechanism for safeguarding the long-term public interest.
This is particularly important because central bank decisions influence borrowing and saving, the cost of investment, economic expectations, and the functioning of the financial system. Given the significance of their powers, central banks must exercise them on the basis of expertise, integrity, and clear institutional accountability. Institutional independence ensures that decisions are grounded in economic analysis, available data, and an assessment of long-term consequences.
It creates the conditions for the consistent implementation of monetary policy and the preservation of stability, even when economic circumstances demand difficult but necessary decisions. In a democratic political system, elected institutions establish the legal objectives and framework within which a central bank operates, while its autonomy safeguards professional decision-making within its mandate. Independence and accountability are therefore not opposing principles; rather, they are mutually reinforcing elements. Independence safeguards professional judgment, while transparency, accountability, and clear communication underpin the legitimacy of decisions and strengthen public trust in the institution.
Public trust is not merely a matter of institutional reputation. It has direct economic significance, shaping inflation expectations, savings and consumption decisions, investment plans, and the predictability of economic relations. In a small, open economy like ours, where a stable exchange rate plays a central role in the monetary framework, confidence in monetary and financial institutions is essential. Policy credibility and institutional consistency are key to preserving price and financial stability and fostering a more predictable economic environment.
Ladies and Gentlemen,
When we speak of price stability, we are talking about more than inflation rates, monetary instruments, or macroeconomic indicators. We are also talking about citizens’ living standards, the security of household budgets, and the ability of households and businesses to plan for the future with confidence.
Price stability is not merely an economic objective; it is also a matter of social security and the protection of the public interest. Monetary and financial stability are public goods precisely because their benefits extend to society as a whole. Stable money provides a common foundation for the functioning of households, businesses, and public institutions.
Preserving price stability therefore requires a consistent, long-term approach. Short-term measures cannot substitute for credible and sustainable monetary policy. At a time when pressure for quick fixes can be considerable, it is particularly important to maintain a focus on long-term stability and avoid measures that could undermine economic expectations.
In this context, the central bank’s importance is also reflected in its ability to preserve confidence in the value of money and, consequently, in the economic relationships built upon it.
The past decades, however, have reminded us that stability cannot be taken for granted. The global financial crisis, the pandemic, energy and price shocks, and geopolitical tensions have demonstrated how quickly external disruptions can spill over into the domestic economy and financial system. For small, open economies, exposure to fluctuations in international prices, changes in external financing conditions, and shifts in global trade makes strong and professional institutions all the more essential.
Trust is particularly important in times of crisis. Clear, transparent, and consistent communication helps the public better understand institutional decisions and contributes to maintaining stable expectations. The public does not expect institutions to eliminate all risks, which is often impossible, but rather to identify them, manage them responsibly, and explain the rationale behind the measures taken.
The National Bank’s eighty-year legacy provides a solid foundation for future development, but it also carries an obligation to continuously strengthen institutional capacities. Geopolitical conflicts, the fragmentation of the global economy, rising trade protectionism, high public debt, and slower productivity growth are creating additional sources of uncertainty. At the same time, climate change and increasingly frequent extreme weather events can lead to economic losses, disruptions in production, and additional pressures on prices and the financial system.
Technological advances, particularly the development of artificial intelligence, offer significant opportunities to improve analytical processes, increase the efficiency of financial services, enhance credit risk assessment, and detect fraud more effectively. At the same time, however, they introduce new risks related to cybersecurity, operational resilience, the concentration of technology services, and the transmission of risks across financial institutions. These developments require central banks to continuously strengthen their analytical and technological capabilities, invest in knowledge and expertise, and develop appropriate approaches to assessing and managing emerging risks.
The future requires a coexistence, institutional stability and the ability to adapt: consistency in principles, flexibility in instruments, and a constant readiness to respond to new challenges.
Ladies and Gentlemen,
Allow me, in closing, to extend my sincere congratulations to the National Bank on this significant anniversary and to express my appreciation for the contributions of all generations of leaders, bankers, and employees who, through their expertise, dedication, and sense of responsibility, have built and developed this institution, making it a second home.
Thank you.
